That seems like a longshot. I don't see payment processors like Paypal dying out unless BTC actually becomes the predominant unit of account (replacing fiat money), which would imply ubiquitous use as a medium of exchange, not just as an investment asset.
For now, not only is Paypal growing, but it's also expanding into other industries like credit card issuance. I think they'll be around for a while.
bitbay will eventually reduce the use case for paypal through the DDE their market place provides.. bitcoin can offer lower rates than paypal although it does favour the vendor over the customer to quite a large extent so does not directly rival paypal as yet imho.
That's an important point. Merchants need to use
what customers want to use. They can't afford to stop accepting Paypal or credit cards in lieu of BTC. Customers can just shop elsewhere where they have consumer protections.
